Underperforming growth in China, improving economic conditions in the US, and the RBA’s recently announced cut in the cash rate to a record low of 2.75% have forced downward pressure on the Australian dollar – culminating in a loss of nearly 8% in value against the USD since mid-April. Crashing from its peak of $US1.10 in July 2011, the AUD has reached an 11 month low, with many analysts warning investors to brace themselves for further deterioration.
The development of monetary policy – Part 1
With the housing market slowing and wages stagnating, political pundits are calling for the RBA to cut rates, but what is the meaning behind these ideas? Conor Yung looks at the genesis of ideas on monetary policy to give you the context behind the business jargon.